Are Index Funds Destroying The Economy?
It would be a shame to comfortably retire in a world that we utterly dislike
There is no doubt that the invention of index funds by Jack Bogle and its firm Vanguard has enormously benefitted consumer investors around the world.
Such investment vehicles have lower costs, minimal governance and higher returns than the majority of actively managed funds. The success was so spectacular that it triggered a revolution within the financial world that is still felt today– a recent report by PWC predicts that assets under passive management will grow to $36.6 trillion by 2025.
And yet Jack Bogle himself, shortly before passing away, was worried that the relentless growth of index funds may eventually not “serve the national interest”.
Company Valuations Disconnected from Fundamental Analysis
Index funds try to mirror the result of a market index by purchasing the underlying assets whose performance is used to calculate the index itself…
